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tv   Nightly Business Report  PBS  December 4, 2019 5:00pm-5:31pm PST

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♪ >> announcer: this is "nightly business report" with sue herera and bill griffeth. bounceback. stocks climb after yesterday's fall. but the self-impred decem 15 tariff deadline couldrove to be a pivot point for the market. challenges ahead. a new report c says theing year could be very hard on housing for both buyers and sellers. retail experiment. wait until you see the lengths one retailer is going to just to sell coats. those stories and much more tonight on "nightly business report" for wednesday, december 4th. good evening, everyone, and welcome. another day, another trade headline and another move in the market. today the direction was higher on a report tha the u.s. and china are edging closer to a
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deal. as you know, the opposite happened yesterday. and as one trader put it, therk is like pavlov's dog. every time someone says trade deal the market goes up or down. 26149.the dow jones was up the nasdaq added 46 an the s&p 500 rose 19. but investor attention is now d turning tember 15th. that's t day the u.s. is set to impose fresh duties on chinese goods. bob pisani lays out three scenarios for the mecnic approaching that key date. >> stock staged a swi comeback from yesterday' loss. do you dow s s&p 5pping back. trade sentiment fuels the market's big moves. frotwo wooeks weeks waig the is self-imposed delinquent of december 15th for tariffs and traders are racking brains over scenarios. how would the market react if say there is no trade deal andi
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existing t stay in place so we don't have any new tariffs going into effect on 15th?mber call it scenario a? that's one most marke watchers pect and hope for. ubs directoray that wouldn't spur big moves one way or another as long as investors get the sense that trade deals don'f completel apart. but what it it worsen as bit and the psident slaps more tariffs on chinese in the next couple he said it would depend if trump puts on additnal tariffs and bumps them up 15% which ishat people might expect, a sell off will happen but not severe. but when if we get tariffs 50% or higher sfl he said put on your helmet. some bulls hold out homes that chinese officials will extend the olive branch invite negotiators to beijingr the president of china and president trump will talk just before christmas and perhaps agree on a truce. bottom line, it'sde getting h for the bulls to control this narrative. getting set lower and lower as
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flow with each for "nightly business report" bob pisani a ythe nk stock exchange. now while investors are focused on decembe 15th officials in beijing are watching lawmakers in washington and action cos play a role in future trade negotiations. you know us yuan looks at the political tit-for-tat from beijing. >> reporter: beige sometheng slamming.s. for criticizing the way china treats local muslim population. e house of representatives passed a bill on tuesday which calls for the closu of what the u.s describes as camps where millions of china's muslim myren, the the uyghurs are allegedly detained. theay bill that chinese officials involved should be sanctioned. chinaays the areas are voluntary training centers and today the foreign ministry defended polics saying they are part of the ant oi terrorism mpaign. the ministry adding china would
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respond further if necessary would could include blacklisting u.s. companiesased op remarks yesterday in the state press. the global times had hinted that being is speeding up the publication of the so-called unreliable entities list. up until now officially state sedia beijing hasn't linked human rig issues such as hong kong or the uyghurs to the trade talks. but today the foreign ministry came close. saying the bill affect cooperation between the two countries in importantre. the ministry also reacted to president trump's commentshe suggests could be delay on a trade deal past the 2020 election. ministry said beijing wouldn't set a time line or a deadline. bloomberg is quoted sources as saying the u.s. andhina are moving closer to fwreeing on the a tariffs rolled back in a phase one deal. from sources here the chinese thought they had an agreement on ago but then president trump nth
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backed away from it. so it's unclear how close the two sides truly are. for "nightly business report," i'm eunice yuan in beijing. oil prices got a lift today on a large drop in crude inventories. this comes one day before a omeeting ofc members where the cartel is wadely expecte to extend production curbs. the price of crude settled% higher to above $58 a barrel. private sector j growth slowed in november, according to payroll processer adp companies only added 67,000 new jobs last of 150,000.below the estimates it was the slowest pace of hiring since may fact. matter of the weakest secretary esp included manufacturing retailers. government releases its own monthly jobs report on friday. a new report for -- from t institute for supply management points to a slowdown in the services sector of the economy.
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economists cite trade tensions and worker shortages which may lead to concerns over the economy's overall healthy. the nunon-cturing portion of the kmoop economy accounts for a big part of the economy. including financing with agriculture and construction. most economists agree that tariffs and trade will have the biggest impact on economic growth next year. but as steve liesman reports, measuring that impt is tricky. >> reporter: wall street ug forecasters sgle just like investors toigure out the outlook for trade and effects on growth next year. but inhe general t say pro longing the trade war and increasing tariffs has three affects increasing downside sks second limiting the potential upside forurprise. and third confirms the modest growth forecasts for 2020. some ecomists have b in trade peace and others just aren't buying it. ldman sachs in a report in november wrote, quote, we expect the drag from the w trade to
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fade gradually although much could go wro. we now expect a phase 1 weeks, end quote after the president said yesterday there may not be a trade deal until after t 2020 elections. mike ferally at jp morgan saide we nwung all the way to thinking trade peace was breaking out. it's not likee have to do a big pivot here. the in 22%. an upbeat outlook in and jp morgan 1.5%. ubs pessimistic at 1%. contact a half dozen economists after the comments mo have had it with taking out the erasers. on average they see the fourth quarter this year and first of next as the bottom of the slowdown. grth is seen ramping up to 2% by the end of the nextier. economists a inclined to assume the worst on trade and be pleasantly sprised if wrong. for "nightly business report," steve liesman.
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and thenil housing ar of the economy and probably the most valuable asset. a new reporn paints unexpectedly harsh picture for the market next year. andt got the attention of riosct of buyers, sellers, homes and investors. here is diana olick. >> almost everything is in placa fo strong start to 2020 housing market. growing demand, a stable job market and low mtgage rates. bun critical thing is missing. >> we're running out of product to sell. if you donave it even with demand they have no where to go. >> they are indicating a lowdown for and recor supply of available homes. low vrpt dropping sales to drop under 2% from this year and home prices flatten nationally. as millennials accounting for half the buying market struggle to afford overheated prices.
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>> they have all upper endor new product. the only existing inventory that they can really enter at is the existing sales pipeline. and there they are basically running out of product. >> in some major markets is pdicting prices could go negative, the first time that's happened since the housing crash. the cities include chicago, dallas, las vegas, miami, detroit, st. louis and san francisco. with homealues weakening sellers will have little incentive to put homes on the market because nobody wants to ca a falling knife. akening supplies only. home construction is increasing and the forecast is for a 6% annual gain. but so far it has largely bee on the upper end of the mechanic, not the entry level where demand istrongest. the only good news in in report is that mortgage rates should remain low. t low rates only help if consumer confidence in-housing is high. for "nightly business report" diana olick in austin. time to look at some of today's upgrades and downgres.
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we only have two. first marvel technology downgraded to market perform from outperform at bmoxam saying the semi conductor maker stock iseasonablyvalued. price target $28 the stock fell 5% to 23.92. owens corning downgraded to oftral from buy at bank america mailer lynch sawing the long rumored breakup of the c glaspany is not likely in the near term. price target $72. shares fell a sha fraction to $65.43. > still ahead, uptd airlines places a multibillion-dollar jet order and it's a blow to boeing. ♪ ♪
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the white house is changing work requirements fore s food stamp recipients. the new rules make itff more ult for states to waive requirements that able-bodied adults wnhout child work at least 20 hours a week or risk losing bifurcates. critics say that that could mak hundreds of thousands ineligible for the program. but t administration says it will get more people into >> what we're doing here, people have to work 20 hours a week or volunteer 20 hours a week or be in job training 20 hours a weekt what we to do is increase employment. e need these people in the workforc >> the rules take effect in april of next year. european plane maker airbus announces announced a major order of the new long range,
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airpla the buyer united airlines purchasing 50 of the jets. it's an order boeing couldn't compete with as it tackles a number of ngissues, incluhe grounding ever the 737 max. phil lebeau has more. >> reporter: united as is turning to airbusor f the next generation of planes, to fly between the east coast of the the airline is buying 50 airbus xlr planes first flight 2024. united didn't place an order for long range planes with boeing in part because boeing doesn't have a model fitting uned's needs. earlier this year airlineiv exec expected boeing ceo dennis mulan rk to announc plans for a in new long range model. in parter happened due to the grounding ever the 737 max which had become the primary focus for the company. airlines like ame will fly the new airbus planes. between destinations that are
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further apart lake the u.s. to europe where u.s. carriers are battling foreign airlines who get higherks i a new survey of travelers flying from north america to europe and asia. to europe knows surved by jd power ranked a turkiline first then virgin atlantic british ail airways and delta de for third. thans for international higher trips what she serve passengers. >> thepp foodr beverage service is more important to the satisfaction. and that's really because food and beverages interaction between you know the airline and itself -- that's in the aircraft >> those flying to asia put japan airlines at e top followed by delta, korean air and the japanese carrier ana. jd powers says u.s. airlines are oreignr behind the competitors when it comes to flights to europe and asia. and they could further improve as delta, american andte u make further investments in
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their international routes. phil lebeau, "nightly business and we're learning that boeing's chief engineer who led tthe boeing responsthe crashes is retiring. last night we told you about thow transition of at google parent company alphabet. gaggle rcofoun sergei brin and larry page are stepping back. and currentooe ceo sundar pichai is also going to be become the parent -- the ceo of the parent company ahabet. and as deedra bosa reports the new boss faces list of challenges. >> it's the end of an era at one of tech's biggest and most successful companies. google cofounder larry page and sergey brin are hanng over the reins to engineer turned manager sundar pichai. pichai has been overseeing the core business ase goo ceo but now as alphabet ceo is he ready to take the company int the next decade? one that is fraught with more challenges and threats than
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ever? regulatory battles in the u.s. and europe are brewing. eue activism on the rise. and privacy practices are under fire. now pich is relatively untested when it comes to the type of battles other big tech ceoss like facebook's mark zuckerberg and apple's tim cook have been fighting. another clalg for pichai could be actual control. while he gets the full ceo tie, larry page and sergey brinll are salphabet's biggest sharmds still retaining conttl through the mar voting power. day to day not a lot is changing pichai will run the important profitable businesses while now also overseeing the ambitious moon shot projects. on the horizon pichai has work cut out. more "nightly business report," deedra bosa, san francisco. campbells rorpts soupy spaems. and that's where we begin the market focus. fewer nameup sold
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sake products in the recent quarter but the company did see crease in the share of the soup market. for the first time in 10 quarters. and its earnings came in better than expected. enough to left t stock rose about 2% to 48.47 hitting a 5152-week high during the expedia is replacing the ceo and cfo following a stratsay eement with the board of directors. earlier this year expedia sought to unite bronzed including or bits, and v the rbo but the chairman of the board said it led t disappointing results. shares were up. constellation brands sold the ballast point craft bear unit to a iinois brewery for an undisclosed amount. buyingallast point in 2015 for a record $1.0 billion. the deal is believed to be below that amount as the market for craft beer slowed. shares off a fraction t 184.29.
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>> g 3 apparel group missesa s estimates the third quarter and lowered guidance as a result. company which os brands like donna karen, calvin klein and tommy hilfiger fell today. union pacific said it sees four ter shi shipping volume down a little more than 10% and the il operator expects revenue to slip by theame amount but after falling f five straight sessions, the stock rose 2% today to 171.46. instructure is ainquired by private equity firm toma bravo the pce tag is $47.60 a share.w 10% besterday's closing price. last month the edution software company said it was reviewing some strategic options. instructure dropped todayo 48.75. following youtube's recent
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landmark $170 million settlement with regulators, for alleg violation of children'srivacy laws, the company is changing the policies and restricting some features around content aimed at kids. with creator.ot going over well ylan mui has the story. >>on jeremy johns normally fills his day was family. >> who wants to help me. f >> and plenty ofun. >> one, two, three, go! >> and he shares it all on the youtube channel with his 2 million subscribers. it's a full-time job and a big business. it takes0 p to 4ople to put together the vateos but ly the most important place for johnson to be is washington, d.c. >> we're trying to inform the ftc commissioners a legislators how the rulation is impacting creator make family friendly content. >> he is worried his channel and ad revenue will take a hit because youtube is changing the way it handles content aimed at
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kids. personalized ads will bedanned aneatures like comments, suggested videos and play lists turned off. it comes after the company was forced to pay a record $136 million to the federal trade commission ove allegations that it illegally collected children's personal data. dvprivacyates say the change is long overdue. >> i do understand this is going to a tect bottom line and they're upset about that. but one thing they gned to recoize is that the business model that they were using was an illegal one. >> some content creator predict ad revenueould plunge 60 to 90% so now fighting back. >> this is very serious. >> family fendly conte is in danger right now. >> we may not be able to create content on youtube. >> creator arguehat youtube's new rules discourage them from making content f kids because they can't make money doing it. some of them could move to amazon prime or netflix where the rules are different. but mostlyhey want washington
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to hear their heside. >> as get the new information they are reconsidering, thinking about it and realizing this is a bigger problem. they don't want the unintended consequences. >> for "nightly business report," ylan new muy in washington. comingp we take to you a store that has no inventory but it does have a daily smell store. ♪ ♪ ♪ i her what we're watching tomorrow. this is highly anticated biogen is presenting data from the experimental alds h wmers drug sks after the company said it was bringing the treatment back from the dead.
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interesting. members of opec immediate t zid on production levels. jobless claims, international tradeac andry orders are all on the economic calendar as well. that's what we are watching tomorrow, thursday. hedge fund manager ste cull isn't in talks to increase a stake in the new york metser are reports he could control 80% of the baseball team. under the agreement fred will pond would remain ceo of the mets five years. in ail forbes valued the new york mets at $2.3 billion. industry evolves in digital age stores are popping one no merchandise to take home. canada goose is the retailer to open a -called experienc storene it hopes helps consumer under why the canada gooseuter wear is worth the price tag. >> courtney reagan went toit experience >> we're in a mall in toronto
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but the canada goose sto is not atore but an experience. we're taking you inside. the entrance of the store is called the cravasse. it means a keep areeep crack in the glacier. the walls are made to look and feel like rock. you can hear above the sound track of the arctic. then you enter the elements room. it's surrounded by curved wallsf projting naturms shot in british columny. the films will change as the seasons the middle of mannequins. and the gear comements the on. noea in the room this is a reinterpretation of a seed vault in norwa storing the world's seeds in case of pandemic it's in the perm frost you get the explanation of the merchandise and the choose the gear appropriate for you how you deal with cold and then you're takg
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it inside the c room. now youe in the cold room. this is about 10 degrees fahrenheit but can get as low as gative 4 degrees meant to simulate arctic conditions. canada goose has other cold rooms this is the only one with actual snow. >> what's reas y important the experience and to be experimental and to try new things. especially in ts day and age whereas we all know retail is changing. if the canada goose journey store did its job you'll leave empty handed. there is no inventory here. but you can come to one of the kiosks, pick out the item that you like and it can be delivered to your home the same day or the next day if you live right here the toronto area. the no inventory sto is part of canada goose's growing direct to khurram business making up ou quarter of totals sales. but the new experience may not be enoug to convince investors
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gichg the stock the cold shored shares downro 45% the all-time highs last notify and down 10% this year. for "nightly business report," courtney reagan in toronto, canada. >> that is very cool. >> yes. >> literally. "onight i'm sue herera. thanks for watching. we'd like to remiepd tou this is the of year your public television station seeks your support. thank you for tha support. have a great evening. see you tomorrow. ♪ ♪ ♪
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